Compare the pair: Accent Group vs JB Hi-Fi shares

These two Australian retailers have seen very different share price movements over the last year, but does that leave one as a buy low option?

Let's dive in. 

Accent Group Ltd (ASX: AX1)

Market Cap: $1.04 billion

P/E Ratio: 17.35

Dividend Yield: 5.46%

Although the name might not be familiar to many investors, Accent Group operates in the retail and distribution of performance and lifestyle footwear. 

It includes over 420 stores across 10 different retail banners and distribution rights for 10 international performance and lifestyle footwear brands including: The Athletes Foot, Hype DC, Platypus Shoes, Skechers, and more.

The share price has remained steady in the last 12 months, ultimately down 1.85% over the past year. 

It reached a 12 month high of $2.66 per share, and currently sits at $1.855. 

What's the upside for Accent Group?

One key factor that jumps off the page is the company's attractive dividend yield. Regardless of growth, this alone could bring investors solid returns. 

Brokers also believe there is upside for the share price as well. 

Bell Potter has a buy recommendation and price target of $2.60. This insinuates a 40% upside from Accent Group's current levels. 

Bell Potter also noted the new store openings scheduled for 1H25 and key contract with Frasers Group as a catalyst for upside. 

Elsewhere, SelfWealth has an average target price of $2.36 and Trading View has a 12 month price target of $2.35. 

JB Hi Fi Ltd (ASX: JBH)

Market Cap: $11.24 billion

P/E Ratio: 24.27

Dividend Yield: 2.68%

The well-known electronics retailer operates over 340 stores in Australia and New Zealand.

One key difference between JB Hi-Fi and Accent Group is that JB Hi-Fi has arguably more defensive earnings and retail presence. 

Essentially, some of its earnings are electronics that are needed by households. Think of appliances, phones, and computers.

These are more necessary than some other consumer discretionary retail purchases in times of economic downturn. 

Regardless, it is undeniable that holders of JB Hi-Fi stocks have been red hot over the last 12 months, with the share price rising 69.68% in that span. 

What's the upside for JB Hi-Fi 

Recent half-year earnings results reinforced the company is in a strong financial position. 

Sales (9.8%), Earnings before interest and tax (8.6%), and Net profit after tax (8%) all rose. 

With its share price also rising considerably over the last year, brokers are split whether there is still potential for more growth.

Macquarie has an outperform rating on JB Hi-Fi with a share price target of $111.

Research from Macquarie on the change in spend (%) 1Q25 vs. 1Q24 shows Australians are spending more money on electronics, with a 10% rise over that span. 

However, broker Bell Potter has a target price of $91.00, suggesting JB Hi-Fi shares may have hit their peak. 

Similarly, online brokerage platform SelfWealth has an average price target of $93.55.

The verdict

For those who have held JB Hi-Fi shares for the past year or more, you couldn't be blamed for considering taking a profit.

Meanwhile, those considering the retailer now might feel like they've missed the boat. However, its strong financials and position in the market makes me think steady growth could continue.

On the flip side, Accent Group seems to have room to grow with store openings on the horizon and an attractive dividend.

Those considering the stock might need buy and be patient, as the current economic climate doesn't necessarily point towards immediate growth.

The post Compare the pair: Accent Group vs JB Hi-Fi shares appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Accent Group and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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